Sustainable Ocean Fund

The Sustainable Ocean Fund (SOF) creates investor value and social impact by providing growth capital to companies that harness the ocean's natural capital.

An unhealthy Ocean puts all Life on Earth at risk.  It adversely affects small island states and underserved coastal communities.  We invest in a scalable business in the real asset sector that also build resilience in coastal ecosystems and create sustainable economic growth and livelihoods. SOF is building a blended portfolio of sustainable seafood, circular economy and conservation focussed businesses. The fund is aiming to twin financial returns with tangible environmental and social outcomes. SOF benefits from a sovereign downside guarantee and significant institutional co-investment.

 

OCEAN OPPORTUNITY

With the World's population set to rise to over 9 billion by 2050, future protein demand will need to be met via responsible traceable and climate smart means. Decades of mis-management has left many ocean assets and in particular fisheries and coral reef ecosystems over-exploited and in a degraded state. Improving the management of these assets can increase productivity, improve operational efficiency and create attractive returns for stakeholders. SOF is investing in three areas that can create strong returns and support a healthy ocean:

Sustainable Seafood Capital and technical resources for best practice aquaculture and wild-caught seafood business that can be certified sustainable and access high-value markets globally. Investment are made into seafood production and through the supply chain to increase efficiency and sustainablity, from input to point of sale.
Circular EconomyInvestment into key coastal infrastructure and business projects to unlock the value from waste and pollution and upcycle products so that they don't damage the ocean. The fund is particularly focussed on plastics and wastewater management.
Ocean Conservation Investment into coastal protection & management to improve biodiversity and resilience in coastal communities, creating business opportunities through tourism, payments for ecosystem services and Blue-Economy infrastructure.

SOF'S STRATEGY

Sof is focused on selecting established, high-quality management teams and delivering transformational projects across the target sectors. SOF invest in established businesses, where our hands-on management approach can support companies to rapidly and sustainably scale, as well as investing in a selection of Series A type opportunities that we believe have the potential to be best practise models in their sector and deliver unique sustainable growth businesses.

SOF is focused on emerging markets and small island states. The managers have positively screened US$50m of deals and commenced initial due diligence 5 lead projects. Based on a fund raise of US$100m the SOF will structure and invest in between 15 and 20 sustainable marine projects with tenors up to eight years.

IMPACTS

SOF is aiming to deliver substantial positive impacts furthering social development, livelihoods and net conservation gains. Target Impacts include:

At least 17,500 ha of mangroves protected from deforestation and degradation, containing over 9m tonnes CO2e and produce at least 177,000 tonnes of climate-smart fish protein, with a CO2 footprint of less than 0.58 million t CO2e. The equivalent amount of beef protein would have a footprint of >3.6milllion t CO2e
Create or directly support in excess of 5,500 jobs in underserved coastal communities and indirectly support a further 14,000 jobs in associated supply chains and businesses.
Finance the direct protection and sustainable management of over 175,000 ha of marine areas in high-value ecosystems and avoid the degradation of over 17,500 ha of mangroves.

PRINCIPAL PROTECTION:

The SOF has signed a US$50m DCA facility with USAID, which will provide a principal protection guarantee covering eligible projects in the portfolio.

INSTITUTIONAL INVESTOR BACKING:
The SOF has held a first close with commitments from leading institutional investors, including, the European Investment Bank, Axa Investment Managers, the IADB, FMO and Caproack Group.

MORE INFORMATION:
Interested parties should contact oceans@althelia.com to find out more.

Althelia Funds